Since the 1982 war over the Falkland Islands, relations between Argentina and Britain have steadily improved.
Full diplomatic relations resumed in 1990, and senior British and Argentine officials have visited in London and Buenos Aires.
In 1994, Prince Andrew made the first royal visit to Argentina since the war's end.
British-Argentine economic relations have slowly recovered.
Argentina lifted financial and trade restrictions on British imports and has encouraged British investment, including in its soon-to-be privatized nuclear industry.
Representatives from both countries have discussed the possibility of jointly developing offshore gas and oil fields bordering the Falklands' waters.
Also, British and Argentine scientists have begun joint research in fish conservation.
Issues remain concerning military ties between the two countries.
Britain still has not lifted the arms embargo it imposed against Argentina following the 1982 war, and refuses to do so.
However, relations have progressed steadily to the point where Britain and Argentina cooperated militarily during the 1991 Gulf War.
Britain and Argentina have seen rapid improvement in relations since President Carlos Menem took office and adopted pro-western foreign policies.
However, one issue continues to divide the two.
Argentina refuses to surrender sovereignty over the Falkland Islands, despite losing the 1982 war.
Consequently, the Falklands' fishing and oil resources continue to be a source of friction.
Although they made a one-year arrangement to share fish resources, Argentina is tying any long-term agreement to British concessions to share oil development and lift the arms embargo.
Two things Britain is not prepared to do.
